Page 246 - AAAXII
P. 246

M.234                                                An Aid to Accountancy—CBSE XII

                          (d)  Stock be written down to ` 8,250.

                          (e)  Shikha, an old customer, whose account was written off as bad debts, has given
                             her acceptance for ` 1,750 for 2 months in full settlement of her dues.
                          (f)  Capital Accounts of A and B are to be adjusted by opening Current Accounts.

                          Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of
                          the new firm.                                                              (8)

                      17.  Smile Ltd. was registered with an authorised share capital of ` 50,00,000 divided into
                          4,00,000 Equity Shares of ` 10 each and 1,00,000, 12% Preference Shares of ` 10 each.
                          It acquired Land and Building from M/s Jain Brothers for ` 20,00,000. The purchase
                          price was discharged by issue of 1,00,000 Equity Shares at a premium of ` 10 per share.
                          The company allotted 10,000 Equity Shares at par to promoters as remuneration for
                          their services rendered to incorporate the company.
                          The company offered to public 2,00,000 Equity Shares at a premium of  ` 10 per
                          share and 50,000, 12% Preference Shares at par, the entire amount being payable
                          on application. The entire issue was underwritten by M/s Gupta Brothers for a
                          commission of 2% of the issue price payable in the form of Equity Shares of Smile Ltd.
                          at par. The issue was fully subscribed by the public.
                          Pass necessary Journal entries in the books of the company.
                                                             Or
                          (a)  What is meant by a pro rata Allotment? Explain with example.

                          (b)  When does the need for a pro rata allotment arise?
                          (c)  What is Reissue of Shares?
                          (d)  How will be the Gain (Profit) on reissue of forfeited shares dealt?
                          (e)  XYZ Ltd. issued 10,000 shares of ` 10 each at a premium of ` 2 per share payable
                             as follows:
                             On application ` 3 per share, on allotment ` 4 per share (including ` 2 premium),
                             on first call ` 2.50 per share, and on second and final call ` 2.50 per share.
                             Mr. Ashok was allotted 500 shares.
                              Give the necessary Journal entry relating to forfeiture of shares in each of the
                             alternative cases:

                             Case     I:  If Mr. Ashok fails to pay the allotment money and his shares are
                                         forfeited before any call is made.

                             Case  II:  If Mr. Ashok fails to pay the allotment money and on his subsequent
                                         failure to pay the first call his shares are forfeited.
                             Case  III:  If Mr. Ashok fails to pay the first call and his shares are forfeited
                                         before the second and final call is made.
                             Case  IV:  If Mr. Ashok fails to pay the second and final call and his shares
                                         are forfeited.                                              (8)
   241   242   243   244   245   246   247   248   249   250   251